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MoTown Appliances sells built-in ranges for $1,400 each. The price includes a one-year warranty. During 2021, the company sells 1,650 ranges. On the basis of
MoTown Appliances sells built-in ranges for $1,400 each. The price includes a one-year warranty. During 2021, the company sells 1,650 ranges. On the basis of past experience, the approximately 4% of units sold will require warranty replacement at an average cost of $ 450 per unit. The actual warranty costs paid by MoTown during 2021 were $ 25,000. Part B: GoTowm charges 5% GST and 7% PST on all sales. On April 27, the company collected $125,500 cash in sales, plus it also collected the necessary sales taxes in cash. Part C: PoTown has the below data for you to record salaries expense and employer benefits expense. Assume company accrues 4% of vacation pay. Gross Pay CPP Employee El Employee Income tax United Best Way $8,319.75 $ 371.85 $138.09 $1,059.15 $91.50
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